United States Prevails in Civil Action against Convicted Doctor

TYLER – The United States has obtained a civil judgment for $1,223,414.50 against Tariq Mahmood of Cedar Hill, who owned and operated multiple rural hospitals across Texas, including East Texas. That announcement came Monday from Acting U.S. Attorney Brit Featherston. In July 2014, a federal jury in Tyler found Mahmood guilty of conspiracy to commit health care fraud, seven counts of health care fraud, and seven counts of aggravated identity theft. Following his conviction, the United States brought a False Claims Act action against Mahmood. The Government alleged in its Motion for Summary Judgment that Mahmood was stopped from denying liability under the False Claims Act as a result of his criminal health care fraud and conspiracy convictions.

In the Court’s Final Judgment dated Oct. 28, U.S. Magistrate Judge K. Nicole Mitchell ordered Mahmood to pay the United States $1,223,414.50. The amount owed to the United States includes $288,414.50 in damages plus an additional $935,000.00 in civil penalties arising from the submission of 85 false claims. The Court awarded the United States the highest applicable civil penalty for each false claim Mahmood caused to be submitted to Medicare and Medicaid, according to the U.S. Attorney’s office.

After his 2014 conviction, authorities followed up with the civil case against Mahmood, who owned the Renaissance Terrell Hospital, which closed in 2013 after a federal agency halted funding. He also operated Cozby Germany Hospital in Grand Saline, Central Texas Hospital in Cameron, Community General Hospital in Dilley, Lake Whitney Medical Center in Whitney and Shelby Regional Medical Center in Center.

Mahmood is serving his sentence at a federal prison in Beaumont.